Why are electric cars more expensive? — The Electric Car Scheme

The second biggest purchase a person will make is a car and many people are alarmed by the price of electric cars compared to petrol and diesel cars.

The initial cost of purchasing a vehicle is a crucial consideration for any prospective buyer. Historically, electric cars were perceived as premium options with higher price tags compared to their petrol counterparts. However, as technology advances, the purchase price gap has been narrowing. Today, many EV models are competitively priced and the overall cost of ownership is lower than petrol cars, especially if you consider the operational expenses.

Have you been considering making the switch to electric, but been put off by the higher price tag compared to a traditional internal combustion engine (ICE) car? In this post, we explore the reasons why electric cars are often more expensive than their ICE counterparts.

EV batteries are expensive

One of the main reasons for the higher cost of electric cars is the battery. The battery is the heart of an electric vehicle and is what powers the car. It’s also the most expensive component of an electric car, accounting for a large portion of the overall cost. At the moment, batteries for electric cars are still relatively expensive to produce, which is one of the reasons the cost of electric cars is higher.

The creation of EV batteries involves a mix of raw materials including aluminium, copper, iron, cobalt, nickel, manganese, graphite, and lithium. These materials are extracted from the earth, contributing to the higher cost of electric vehicles compared to their petrol or diesel counterparts. Specifically focusing on lithium, approximately 95% of its global production is in Australia, Chile, China, and Argentina. You can read more about EV batteries in our blog, what is the lifespan of an electric car in the UK?

How battery degradation affects the used car market

Lithium batteries are composed of individual cells, each consisting of a positive electrode (cathode) and a negative electrode (anode). During the charging and discharging process, lithium ions move between the anode and cathode, generating the necessary power for your vehicle.